BILL NUMBER: AB 1912	CHAPTERED  09/21/00

	CHAPTER   566
	FILED WITH SECRETARY OF STATE   SEPTEMBER 21, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 18, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	PASSED THE SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   AUGUST 23, 2000
	AMENDED IN SENATE   JUNE 19, 2000
	AMENDED IN SENATE   MAY 26, 2000
	AMENDED IN ASSEMBLY   APRIL 5, 2000
	AMENDED IN ASSEMBLY   MARCH 23, 2000

INTRODUCED BY   Assembly Member Torlakson

                        FEBRUARY 11, 2000

   An act to amend Section 18010 of, and to add Section 18009.3 to,
the Health and Safety Code, and to amend Sections 635, 4453, 11713.1,
11713.3, 34500, and 35780.3 of the Vehicle Code, relating to park
trailers.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1912, Torlakson.  Park trailers.
   (1) The Mobilehome Residency Law generally regulates tenancies
within a mobilehome park.  The Recreational Vehicle Park Occupancy
Law generally regulates tenancies in a recreational vehicle park.
The Mobilehome-Manufactured Housing Act of 1980 generally regulates
manufactured housing.  For purposes of these provisions, a
recreational vehicle is defined to mean either a park trailer or a
motor home, travel trailer, truck camper, or camping trailer that
meets certain requirements.  A park trailer is a recreational trailer
designed for human habitation for recreational or seasonal use only,
which is built on a single chassis, may only be transported upon the
public highways with a permit, and contains 400 square feet or less
of gross floor area measured at the maximum horizontal projections,
but does not exceed 12 feet in width or 40 feet in length in a
traveling mode.
   Existing law requires any licensed manufacturer, manufacturer
branch, distributor, or distributor branch to affix an identification
number to a park trailer and requires the Department of
Transportation to regulate the safe operation of a park trailer,
which, when moved upon a highway, is required to be moved pursuant to
a permit.
   This bill would revise the definition of park trailer to, among
other things, remove the limitation on length and extend the
limitation on width to 14 feet.  The bill would make other related
and conforming changes.
   (2) This bill would incorporate additional changes in Section
11713.1 of the Vehicle Code proposed by SB 2060, that would become
operative only if SB 2060 and this bill are both enacted and become
effective on or before January 1, 2001, and this bill is enacted
last.
   This bill would also incorporate additional changes in Section
11713.2 of the Vehicle Code proposed by SB 1819, that would become
operative only if SB 1819 and this bill are both enacted and become
effective on or before January 1, 2001, and this bill is enacted
last.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 18009.3 is added to the Health and Safety Code,
to read:
   18009.3.  "Park trailer" means a trailer designed for human
habitation for recreational or seasonal use only, that meets all of
the following requirements:
   (a) It contains 400 square feet or less of gross floor area.  It
may not exceed 14 feet in width at the maximum horizontal projection.

   (b) It is built upon a single chassis.
   (c) It may only be transported upon the public highways with a
permit issued pursuant to Section 35780 of the Vehicle Code.
  SEC. 2.  Section 18010 of the Health and Safety Code is amended to
read:
   18010.  "Recreational vehicle" means both of the following:
   (a) A motor home, travel trailer, truck camper, or camping
trailer, with or without motive power, designed for human habitation
for recreational, emergency, or other occupancy, that meets all of
the following criteria:
   (1) It contains less than 320 square feet of internal living room
area, excluding built-in equipment, including, but not limited to,
wardrobe, closets, cabinets, kitchen units or fixtures, and bath or
toilet rooms.
   (2) It contains 400 square feet or less of gross area measured at
maximum horizontal projections.
   (3) It is built on a single chassis.
   (4) It is either self-propelled, truck-mounted, or permanently
towable on the highways without a permit.
   (b) A park trailer, as defined in Section 18009.3.
  SEC. 3.  Section 635 of the Vehicle Code is amended to read:
   635.  A "trailer coach" is a vehicle, other than a motor vehicle,
designed for human habitation or human occupancy for industrial,
professional, or commercial purposes, for carrying property on its
own structure, and for being drawn by a motor vehicle.  A "park
trailer," as described in Section 18009.3 of the Health and Safety
Code, is a trailer coach.
  SEC. 4.  Section 4453 of the Vehicle Code is amended to read:
   4453.  (a) The registration card shall contain upon its face, the
date issued, the name and residence or business address of the owner
and of the legal owner, if any, the registration number assigned to
the vehicle, and a description of the vehicle as complete as that
required in the application for registration of the vehicle.
   (b) A motor vehicle of a type included in this subdivision shall
be identified as such on the face of the registration card, whenever
the department is able to ascertain that fact, at the time
application is made for initial registration or transfer of ownership
of the vehicle.
   (1) A motor vehicle rebuilt and restored to operation which was
previously declared to be a total loss salvage vehicle because the
cost of repairs exceeds the retail value of the vehicle.
   (2) A motor vehicle rebuilt and restored to operation which was
previously reported to be dismantled pursuant to Section 11520.
   (3) A motor vehicle previously registered to a law enforcement
agency and operated in law enforcement work.
   (4) A motor vehicle formerly operated as a taxicab.
   (5) A motor vehicle manufactured outside of the United States and
not intended by the manufacturer for sale in the United States.
   (6) A park trailer, as described in Section 18009.3 of the Health
and Safety Code, which when moved upon the highway is required to be
moved under a permit pursuant to Section 35780.
   (7) A motor vehicle that has been reacquired under circumstances
described in subdivision (c) of Section 1793.23 of the Civil Code, a
vehicle with out-of-state titling documents reflecting a warranty
return, or a vehicle that has been identified by an agency of another
state as requiring a warranty return title notation, pursuant to the
laws of that state.  The notation made on the face of the
registration and pursuant to this subdivision shall state "Lemon Law
Buyback."
   (c) The director may modify the form, arrangement, and information
appearing on the face of the registration card and may provide for
standardization and abbreviation of fictitious or firm names on the
registration card whenever the director finds that the efficiency of
the department will be promoted by so doing, except that general
delivery or post office box numbers shall not be permitted as the
address of the registered owner unless there is no other address.
  SEC. 5.  Section 11713.1 of the Vehicle Code is amended to read:
   11713.1.  It is a violation of this code for the holder of any
dealer's license issued under this article to do any of the
following:
   (a) Advertise any specific vehicle for sale without identifying
the vehicle by either its vehicle identification number or license
number.
   (b) Advertise the total price of a vehicle without including all
costs to the purchaser at time of sale, except taxes, vehicle
registration fees, emission testing fees not exceeding fifty dollars
($50), actual fees charged for certificates pursuant to Section 44060
of the Health and Safety Code, finance charges, and any dealer
document preparation charge.  The dealer document preparation charge
shall not exceed forty-five dollars ($45).
   (c) Exclude from the newspaper display advertisement of a vehicle
for sale that there will be added to the advertised total price at
the time of sale, charges for sales tax, vehicle registration fees,
the fee charged by the state for the issuance of any certificate of
compliance or noncompliance pursuant to any statute, finance charges,
and any dealer document preparation charge.
   For purposes of this subdivision, "newspaper display advertisement"
means any advertisement in a newspaper which is two or more
newspaper columns in width or one newspaper column in width and more
than seven inches in length.
   (d) Represent the dealer document preparation charge or
certificate of compliance or noncompliance fee, as a governmental
fee.
   (e) Fail to sell a vehicle to any person at the advertised total
price, exclusive of taxes, vehicle registration fees, the fee charged
by the state for the issuance of any certificate of compliance or
noncompliance pursuant to any statute, finance charges, mobilehome
escrow fees, the amount of any city, county, or city and county
imposed fee or tax for a mobilehome, and any dealer document
preparation charge, which charges shall not exceed forty-five dollars
($45) for the document preparation charge and not to exceed fifty
dollars ($50) for emission testing plus the actual fees charged for
certificates pursuant to Section 44060 of the Health and Safety Code,
while the vehicle remains unsold, unless the advertisement states
the advertised total price is good only for a specified time and the
time has elapsed.
   (f) (1) Advertise for sale, sell, or purchase for resale any new
vehicle of a line-make for which the dealer does not hold a
franchise.
   (2) This subdivision does not apply to any transaction involving
any of the following:
   (A) A mobilehome.
   (B) A recreational vehicle as defined in Section 18010 of the
Health and Safety Code.
   (C) A commercial coach, as defined in Section 18001.8 of the
Health and Safety Code.
   (D) An off-highway motor vehicle subject to identification as
defined in Section 38012.
   (E) A manufactured home.
   (F) A new vehicle that will be substantially altered or modified
by a converter prior to resale.
   (G) A commercial vehicle with a gross vehicle weight rating or
more than 10,000 pounds.
   (H) A vehicle purchased for export and exported outside the
territorial limits of the United States without being registered with
the department.
   (g) Sell a park trailer, as specified in Section 18009.3 of the
Health and Safety Code, without disclosing in writing to the
purchaser that a park trailer is required to be moved by a
transporter or a licensed manufacturer or dealer under a permit
issued by the Department of Transportation or a local authority with
respect to highways under their respective jurisdictions.
   (h) Advertise free merchandise, gifts, or services provided by a
dealer contingent on the purchase of a vehicle.  The term "free"
includes merchandise or services offered for sale at a price less
than the seller's cost of the merchandise or services.
   (i) Advertise vehicles, and related goods or services, at a
specified dealer price, with the intent not to supply reasonably
expectable demand, unless the advertisement discloses the number of
vehicles in stock at the advertised price.  In addition, whether or
not there are sufficient vehicles in stock to supply a reasonably
expectable demand, when phrases such as "starting at," "from,"
"beginning as low as," or words of similar import are used in
reference to an advertised price, the advertisement shall disclose
the number of vehicles available at that advertised price.
   For purposes of this subdivision, in any newspaper advertisement
for a vehicle that is two model years old or newer, the actual phrase
that states the number of vehicles in stock at the advertised price
shall be (1) printed in a type size that is at least equal to
one-quarter of the type size, and in the same style and color of
type, used for the advertised price, however, in no case shall the
phrase be printed in less than 8-point type size, and (2) be
disclosed immediately above, below, or beside the advertised price
without any intervening words, pictures, marks, or symbols.
   The disclosure required by this subdivision is in addition to any
other disclosure required by this code or any regulation regarding
identifying vehicles advertised for sale.
   (j) Use the term "rebate" or similar words such as "cash back" in
advertising the sale of a vehicle unless the rebate is expressed in a
specific dollar amount and is in fact a rebate offered by the
vehicle manufacturer or distributor directly to the retail purchaser
of the vehicle or to the assignee of the retail purchaser.
   (k) Require a person to pay a higher price for a vehicle and
related goods or services for receiving advertised credit terms than
the cash price the same person would have to pay to purchase the same
vehicle and related goods or services.  For the purpose of this
subdivision, "cash price" has the meaning as defined in subdivision
(e) of Section 2981 of the Civil Code.
   (l) Advertise a guaranteed trade-in allowance unless the guarantee
is provided by the manufacturer or distributor.
   (m) Misrepresent the authority of a salesperson, representative,
or agent to negotiate the final terms of a transaction.
   (n) (1) Use the terms "invoice," "dealer's invoice," "wholesale
price," or similar terms that refer to a dealer's cost for a vehicle
in an advertisement for the sale of a vehicle or advertise that the
selling price of a vehicle is above, below, or at either of the
following:
   (A) The manufacturer's or distributor's invoice price to a dealer.

   (B) A dealer's cost.
   (2) This subdivision does not apply to either of the following:
   (A) Any communication occurring during face-to-face negotiations
for the purchase of a specific vehicle if the prospective purchaser
initiates a discussion of the vehicle's invoice price or the dealer's
cost for that vehicle.
   (B) Any communication between a dealer and a prospective
commercial purchaser that is not disseminated to the general public.
For purposes of this subparagraph, a "commercial purchaser" means a
dealer, lessor, lessor-retailer, manufacturer, remanufacturer,
distributor, financial institution, governmental entity, or person
who purchases 10 or more vehicles during a year.
   (o) Violate any law prohibiting bait and switch advertising,
including, but not limited to, the guides against bait advertising
set forth in Part 238 (commencing with Section 238) of Title 16 of
the Code of Federal Regulations, as those regulations read on January
1, 1988.
   (p) Make any untrue or misleading statement indicating that a
vehicle is equipped with all the factory installed optional equipment
the manufacturer offers, including, but not limited to, a false
statement that a vehicle is "fully factory equipped."
   (q) Affix on any new vehicle a supplemental price sticker
containing a price that represents the dealer's asking price which
exceeds the manufacturer's suggested retail price unless all of the
following occur:
   (1) The supplemental sticker clearly and conspicuously discloses
in the largest print appearing on the sticker, other than the print
size used for the dealer's name, that the supplemental sticker price
is the dealer's asking price, or words of similar import, and that it
is not the manufacturer's suggested retail price.
   (2) The supplemental sticker clearly and conspicuously discloses
the manufacturer's suggested retail price.
   (3) The supplemental sticker lists each item which is not included
in the manufacturer's suggested retail price, and discloses the
additional price of each item.  If the supplemental sticker price is
greater than the sum of the manufacturer's suggested retail price and
the price of the items added by the dealer, then the supplemental
sticker price shall set forth that difference and describe it as
"added mark-up."
   (r) Advertise any underselling claim, such as "we have the lowest
prices" or "we will beat any dealer's price," unless the dealer has
conducted a recent survey showing that the dealer sells its vehicles
at lower prices than any other licensee in its trade area and
maintains records to adequately substantiate the claims.  The
substantiating records shall be made available to the department upon
request.
   (s) Advertise any incentive offered by the manufacturer or
distributor if the dealer is required to contribute to the cost of
the incentive as a condition of participating in the incentive
program, unless the dealer discloses in a clear and conspicuous
manner that dealer participation may affect consumer cost.
   For purposes of this subdivision, "incentive" means anything of
value offered to induce people to purchase a vehicle, including, but
not limited to, discounts, savings claims, rebates, below-market
finance rates, and free merchandise or services.
   (t) Display or offer for sale any used vehicle unless there is
affixed to the vehicle the Federal Trade Commission's Buyer's Guide
as required by Part 455 of Title 16 of the Code of Federal
Regulations.
   (u) Fail to disclose in writing to the franchisor of a new motor
vehicle dealer the name of the purchaser, date of sale, and the
vehicle identification number of each new motor vehicle sold of the
line-make of that franchisor, or intentionally submit to that
franchisor a false name for the purchaser or false date for the date
of sale.
   (v) Enter into a contract for the retail sale of a motor vehicle
unless the contract clearly and conspicuously discloses whether the
vehicle is being sold as a new vehicle or a used vehicle, as defined
in this code.
   (w) Use a simulated check, as defined in subdivision (a) of
Section 22433 of the Business and Professions Code, in an
advertisement for the sale or lease of a vehicle.
   (x) Fail to disclose, in a clear and conspicuous manner in at
least 10-point bold type on the face of any contract for the retail
sale of a new motor vehicle that this transaction is, or is not,
subject to a fee received by an autobroker from the selling new motor
vehicle dealer, and the name of the autobroker, if applicable.
  SEC. 5.5.  Section 11713.1 of the Vehicle Code is amended to read:

   11713.1.  It is a violation of this code for the holder of any
dealer's license issued under this article to do any of the
following:
   (a) Advertise any specific vehicle for sale without identifying
the vehicle by either its vehicle identification number or license
number.
   (b) Advertise the total price of a vehicle without including all
costs to the purchaser at time of sale, except taxes, vehicle
registration fees, emission testing fees not exceeding fifty dollars
($50), actual fees charged for certificates pursuant to Section 44060
of the Health and Safety Code, finance charges, and any dealer
document preparation charge.  The dealer document preparation charge
shall not exceed forty-five dollars ($45).
   (c) (1) Exclude from an advertisement of a vehicle for sale that
there will be added to the advertised total price at the time of
sale, charges for sales tax, vehicle registration fees, the fee
charged by the state for the issuance of any certificate of
compliance or noncompliance pursuant to any statute, finance charges,
and any dealer document preparation charge.
   (2) For purposes of paragraph (1), "advertisement"  means any
advertisement in a newspaper, magazine, direct mail publication, or
handbill that is two or more columns in width or one column in width
and more than seven inches in length, or on any web page of a dealer'
s website that displays the price of a vehicle offered for sale on
the Internet, as that term is defined in paragraph (6) of subdivision
(e) of Section 17538 of the Business and Professions Code.
   (d) Represent the dealer document preparation charge or
certificate of compliance or noncompliance fee, as a governmental
fee.
   (e) Fail to sell a vehicle to any person at the advertised total
price, exclusive of taxes, vehicle registration fees, the fee charged
by the state for the issuance of any certificate of compliance or
noncompliance pursuant to any statute, finance charges, mobilehome
escrow fees, the amount of any city, county, or city and county
imposed fee or tax for a mobilehome, and any dealer document
preparation charge, which charges shall not exceed forty-five dollars
($45) for the document preparation charge and not to exceed fifty
dollars ($50) for emission testing plus the actual fees charged for
certificates pursuant to Section 44060 of the Health and Safety Code,
while the vehicle remains unsold, unless the advertisement states
the advertised total price is good only for a specified time and the
time has elapsed.
   (f) (1) Advertise for sale, sell, or purchase for resale any new
vehicle of a line-make for which the dealer does not hold a
franchise.
   (2) This subdivision does not apply to any transaction involving
any of the following:
   (A) A mobilehome.
   (B) A recreational vehicle as defined in Section 18010 of the
Health and Safety Code.
   (C) A commercial coach, as defined in Section 18001.8 of the
Health and Safety Code.
   (D) An off-highway motor vehicle subject to identification as
defined in Section 38012.
   (E) A manufactured home.
   (F) A new vehicle that will be substantially altered or modified
by a converter prior to resale.
   (G) A commercial vehicle with a gross vehicle weight rating or
more than 10,000 pounds.
   (H) A vehicle purchased for export and exported outside the
territorial limits of the United States without being registered with
the department.
   (g) Sell a park trailer, as specified in Section 18009.3 of the
Health and Safety Code, without disclosing in writing to the
purchaser that a park trailer is required to be moved by a
transporter or a licensed manufacturer or dealer under a permit
issued by the Department of Transportation or a local authority with
respect to highways under their respective jurisdictions.
   (h) Advertise free merchandise, gifts, or services provided by a
dealer contingent on the purchase of a vehicle.  The term "free"
includes merchandise or services offered for sale at a price less
than the seller's cost of the merchandise or services.
   (i) Advertise vehicles, and related goods or services, at a
specified dealer price, with the intent not to supply reasonably
expectable demand, unless the advertisement discloses the number of
vehicles in stock at the advertised price.  In addition, whether or
not there are sufficient vehicles in stock to supply a reasonably
expectable demand, when phrases such as "starting at," "from,"
"beginning as low as," or words of similar import are used in
reference to an advertised price, the advertisement shall disclose
the number of vehicles available at that advertised price.
   For purposes of this subdivision, in any newspaper advertisement
for a vehicle that is two model years old or newer, the actual phrase
that states the number of vehicles in stock at the advertised price
shall be (1) printed in a type size that is at least equal to
one-quarter of the type size, and in the same style and color of
type, used for the advertised price, however, in no case shall the
phrase be printed in less than 8-point type size, and (2) be
disclosed immediately above, below, or beside the advertised price
without any intervening words, pictures, marks, or symbols.
   The disclosure required by this subdivision is in addition to any
other disclosure required by this code or any regulation regarding
identifying vehicles advertised for sale.
   (j) Use the term "rebate" or similar words such as "cash back" in
advertising the sale of a vehicle unless the rebate is expressed in a
specific dollar amount and is in fact a rebate offered by the
vehicle manufacturer or distributor directly to the retail purchaser
of the vehicle or to the assignee of the retail purchaser.
   (k) Require a person to pay a higher price for a vehicle and
related goods or services for receiving advertised credit terms than
the cash price the same person would have to pay to purchase the same
vehicle and related goods or services.  For the purpose of this
subdivision, "cash price" has the meaning as defined in subdivision
(e) of Section 2981 of the Civil Code.
   (l) Advertise a guaranteed trade-in allowance unless the guarantee
is provided by the manufacturer or distributor.
   (m) Misrepresent the authority of a salesperson, representative,
or agent to negotiate the final terms of a transaction.
   (n) (1) Use the terms "invoice," "dealer's invoice," "wholesale
price," or similar terms that refer to a dealer's cost for a vehicle
in an advertisement for the sale of a vehicle or advertise that the
selling price of a vehicle is above, below, or at either of the
following:
   (A) The manufacturer's or distributor's invoice price to a dealer.

   (B) A dealer's cost.
   (2) This subdivision does not apply to either of the following:
   (A) Any communication occurring during face-to-face negotiations
for the purchase of a specific vehicle if the prospective purchaser
initiates a discussion of the vehicle's invoice price or the dealer's
cost for that vehicle.
   (B) Any communication between a dealer and a prospective
commercial purchaser that is not disseminated to the general public.
For purposes of this subparagraph, a "commercial purchaser" means a
dealer, lessor, lessor-retailer, manufacturer, remanufacturer,
distributor, financial institution, governmental entity, or person
who purchases 10 or more vehicles during a year.
   (o) Violate any law prohibiting bait and switch advertising,
including, but not limited to, the guides against bait advertising
set forth in Part 238 (commencing with Section 238) of Title 16 of
the Code of Federal Regulations, as those regulations read on January
1, 1988.
   (p) Make any untrue or misleading statement indicating that a
vehicle is equipped with all the factory installed optional equipment
the manufacturer offers, including, but not limited to, a false
statement that a vehicle is "fully factory equipped."
   (q) Affix on any new vehicle a supplemental price sticker
containing a price that represents the dealer's asking price which
exceeds the manufacturer's suggested retail price unless all of the
following occur:
   (1) The supplemental sticker clearly and conspicuously discloses
in the largest print appearing on the sticker, other than the print
size used for the dealer's name, that the supplemental sticker price
is the dealer's asking price, or words of similar import, and that it
is not the manufacturer's suggested retail price.
   (2) The supplemental sticker clearly and conspicuously discloses
the manufacturer's suggested retail price.
   (3) The supplemental sticker lists each item which is not included
in the manufacturer's suggested retail price, and discloses the
additional price of each item.  If the supplemental sticker price is
greater than the sum of the manufacturer's suggested retail price and
the price of the items added by the dealer, then the supplemental
sticker price shall set forth that difference and describe it as
"added mark-up."
   (r) Advertise any underselling claim, such as "we have the lowest
prices" or "we will beat any dealer's price," unless the dealer has
conducted a recent survey showing that the dealer sells its vehicles
at lower prices than any other licensee in its trade area and
maintains records to adequately substantiate the claims.  The
substantiating records shall be made available to the department upon
request.
   (s) Advertise any incentive offered by the manufacturer or
distributor if the dealer is required to contribute to the cost of
the incentive as a condition of participating in the incentive
program, unless the dealer discloses in a clear and conspicuous
manner that dealer participation may affect consumer cost.
   For purposes of this subdivision, "incentive" means anything of
value offered to induce people to purchase a vehicle, including, but
not limited to, discounts, savings claims, rebates, below-market
finance rates, and free merchandise or services.
   (t) Display or offer for sale any used vehicle unless there is
affixed to the vehicle the Federal Trade Commission's Buyer's Guide
as required by Part 455 of Title 16 of the Code of Federal
Regulations.
   (u) Fail to disclose in writing to the franchisor of a new motor
vehicle dealer the name of the purchaser, date of sale, and the
vehicle identification number of each new motor vehicle sold of the
line-make of that franchisor, or intentionally submit to that
franchisor a false name for the purchaser or false date for the date
of sale.
   (v) Enter into a contract for the retail sale of a motor vehicle
unless the contract clearly and conspicuously discloses whether the
vehicle is being sold as a new vehicle or a used vehicle, as defined
in this code.
   (w) Use a simulated check, as defined in subdivision (a) of
Section 22433 of the Business and Professions Code, in an
advertisement for the sale or lease of a vehicle.
   (x) Fail to disclose, in a clear and conspicuous manner in at
least 10-point bold type on the face of any contract for the retail
sale of a new motor vehicle that this transaction is, or is not,
subject to a fee received by an autobroker from the selling new motor
vehicle dealer, and the name of the autobroker, if applicable.
   (y) This section shall become operative on July 1, 2001.
                                SEC. 6.  Section 11713.3 of the
Vehicle Code is amended to read:
   11713.3.  It is unlawful and a violation of this code for any
manufacturer, manufacturer branch, distributor, or distributor branch
licensed under this code to do any of the following:
   (a) To refuse or fail to deliver in reasonable quantities and
within a reasonable time after receipt of an order from a dealer
having a franchise for the retail sale of any new vehicle sold or
distributed by the manufacturer or distributor, any new vehicle or
parts or accessories to new vehicles as are covered by the franchise,
if the vehicle, parts, or accessories are publicly advertised as
being available for delivery or actually being delivered.  This
subdivision is not violated, however, if the failure is caused by
acts or causes beyond the control of the manufacturer, manufacturer
branch, distributor, or distributor branch.
   (b) To prevent or require, or attempt to prevent or require, by
contract or otherwise, any change in the capital structure of a
dealership or the means by or through which the dealer finances the
operation of the dealership, provided that the dealer at all times
meets any reasonable capital standards agreed to by the dealer and
the manufacturer or distributor, and also provided that no change in
capital structure shall cause a change in the principal management or
have the effect of a sale of the franchise without the consent of
the manufacturer or distributor.
   (c) To prevent or require, or attempt to prevent or require, a
dealer to change the executive management of a dealership, other than
the principal dealership operator or operators if the franchise was
granted the dealer in reliance upon the personal qualifications of
such person or persons.
   (d) (1) Except as provided in subdivision (t), to prevent or
require, or attempt to prevent or require, by contract or otherwise,
any dealer, or any officer, partner, or stockholder of any
dealership, the sale or transfer of any part of the interest of any
of them to any other person or persons.  No dealer, officer, partner,
or stockholder shall, however, have the right to sell, transfer, or
assign the franchise, or any right thereunder, without the consent of
the manufacturer or distributor except that the consent shall not be
unreasonably withheld.
   (2) (A) For the transferring franchisee to fail, prior to the
sale, transfer, or assignment of a franchisee or the sale,
assignment, or transfer of all or substantially all of the assets of
the franchised business or a controlling interest in the franchised
business to another person, to notify the manufacturer or distributor
of the franchisee's decision to sell, transfer, or assign the
franchise.  The notice shall be in writing and shall include all of
the following:
   (i) The proposed transferee's name and address.
   (ii) A copy of all of the agreements relating to the sale,
assignment, or transfer of the franchised business or its assets.
   (iii) The proposed transferee's application for approval to become
the successor franchisee.  The application shall include forms and
related information generally utilized by the manufacturer or
distributor in reviewing prospective franchisees, if those forms are
readily made available to existing franchisees.  As soon as
practicable after receipt of the proposed transferee's application,
the manufacturer or distributor shall notify the franchisee and the
proposed transferee of any information needed to make the application
complete.
   (B) For the manufacturer or distributor, to fail on or before 60
days after the receipt of all of the information required pursuant to
subparagraph (A), or as extended by a written agreement between the
manufacturer or distributor and the franchisee, to notify the
franchisee of the approval or the disapproval of the sale, transfer,
or assignment of the franchise.  The notice shall be in writing and
shall be personally served or sent by certified mail, return receipt
requested, or by guaranteed overnight delivery service that provides
verification of delivery and shall be directed to the franchisee.
Any proposed sale, assignment, or transfer shall be deemed approved,
unless disapproved by the franchisor in the manner provided by this
subdivision.  If the proposed sale, assignment, or transfer is
disapproved, the franchisor shall include in the notice of
disapproval a statement setting forth the reasons for the
disapproval.
   (3) In any action in which the manufacturer's or distributor's
withholding of consent under this subdivision or subdivision (e) is
an issue, whether the withholding of consent was unreasonable is a
question of fact requiring consideration of all the existing
circumstances.
   (e) To prevent, or attempt to prevent, a dealer from receiving
fair and reasonable compensation for the value of the franchised
business.  There shall be no transfer or assignment of the dealer's
franchise without the consent of the manufacturer or distributor,
which consent shall not be unreasonably withheld or conditioned upon
the release, assignment, novation, waiver, estoppel, or modification
of any claim or defense by the dealer.
   (f) To obtain money, goods, service, or any other benefit from any
other person with whom the dealer does business, on account of, or
in relation to, the transaction between the dealer and that other
person, other than for compensation for services rendered, unless the
benefit is promptly accounted for, and transmitted to, the dealer.
   (g) To require a dealer to prospectively assent to a release,
assignment, novation, waiver, or estoppel which would relieve any
person from liability to be imposed by this article or to require any
controversy between a dealer and a manufacturer, distributor, or
representative, to be referred to any person other than the board, if
the referral would be binding on the dealer.  This subdivision does
not, however, prohibit arbitration before an independent arbitrator.

   (h) To increase prices of motor vehicles which the dealer had
ordered for private retail consumers prior to the dealer's receipt of
the written official price increase notification.  A sales contract
signed by a private retail consumer is evidence of each such order.
In the event of manufacturer price reductions, the amount of the
reduction received by a dealer shall be passed on to the private
retail consumer by the dealer if the retail price was negotiated on
the basis of the previous higher price to the dealer.  Price
reductions apply to all vehicles in the dealer's inventory which were
subject to the price reduction.  Price differences applicable to new
model or series motor vehicles at the time of the introduction of
new models or series shall not be considered a price increase or
price decrease.  Price changes caused by either (1) the addition to a
motor vehicle of required or optional equipment pursuant to state or
federal law, or (2) revaluation of the United States dollar in the
case of foreign-make vehicles, are not subject to this subdivision.
   (i) To fail to pay to a dealer, within a reasonable time following
receipt of a valid claim by a dealer thereof, any payment agreed to
be made by the manufacturer or distributor to the dealer by reason of
the fact that a new vehicle of a prior year model is in the dealer's
inventory at the time of introduction of new model vehicles.
   (j) To deny the widow or heirs designated by a deceased owner of a
dealership, the opportunity to participate in the ownership of the
dealership or successor dealership under a valid franchise for a
reasonable time after the death of the owner.
   (k) To offer any refunds or other types of inducements to any
person for the purchase of new motor vehicles of a certain line-make
to be sold to the state or any political subdivision thereof without
making the same offer to all other dealers in the same line-make
within the relevant market area.
   (l) To modify, replace, enter into, relocate, terminate or refuse
to renew a franchise in violation of Article 4 (commencing with
Section 3060) of Chapter 6 of Division 2.
   (m) To employ a person as a representative who has not been
licensed pursuant to Article 3 (commencing with Section 11900) of
Chapter 4 of Division 5.
   (n) To deny any dealer the right of free association with any
other dealer for any lawful purpose.
   (o) To compete with a dealer in the same line-make operating under
an agreement or franchise from a manufacturer or distributor in the
relevant market area.  A manufacturer or distributor shall not,
however, be deemed to be competing when operating a dealership either
temporarily for a reasonable period, or in a bona fide retail
operation which is for sale to any qualified independent person at a
fair and reasonable price, or in a bona fide relationship in which an
independent person has made a significant investment subject to loss
in the dealership and can reasonably expect to acquire full
ownership of the dealership on reasonable terms and conditions.  A
distributor shall not be deemed to be competing when a wholly owned
subsidiary corporation of the distributor sells motor vehicles at
retail, if, for at least three years prior to January 1, 1973, the
subsidiary corporation has been a wholly owned subsidiary of the
distributor and engaged in the sale of vehicles at retail.
   (p) To unfairly discriminate among its franchisees with respect to
warranty reimbursement or authority granted its franchisees to make
warranty adjustments with retail customers.
   (q) To sell vehicles to persons not licensed under this chapter
for resale.
   (r) To fail to affix an identification number to any park trailer,
as described in Section 18009.3 of the Health and Safety Code, that
is manufactured on or after January 1, 1987, and which does not
clearly identify the unit as a park trailer to the department.  The
configuration of the identification number shall be approved by the
department.
   (s) To dishonor a warranty, rebate, or other incentive offered to
the public or a dealer in connection with the retail sale of a new
motor vehicle, based solely upon the fact that an autobroker arranged
or negotiated the sale.  This subdivision shall not prohibit the
disallowance of that rebate or incentive if the purchaser or dealer
is ineligible to receive the rebate or incentive pursuant to any
other term or condition of a rebate or incentive program.
   (t) To exercise a right of first refusal or any other right
requiring a franchisee or any owner thereof to sell, transfer, or
assign to the franchisor, or to any nominee of the franchisor, all or
any material part of the franchised business or of the assets
thereof unless all of the following requirements are met:
   (1) The franchise authorizes the franchisor to exercise a right of
first refusal to acquire the franchised business or assets thereof
in the event of a proposed sale, transfer or assignment.
   (2) The franchisor gives written notice of its exercise of the
right of first refusal no later than 45 days after the franchisor
receives all of the information required pursuant to subparagraph (A)
of paragraph (2) of subdivision (d).
   (3) The sale, transfer, or assignment being proposed relates to
not less than all or substantially all of the assets of the
franchised business or to a controlling interest in the franchised
business.
   (4) The proposed transferee is neither a family member of an owner
of the franchised business, nor a managerial employee of the
franchisee owning 15 percent or more of the franchised business, nor
a corporation, partnership, or other legal entity owned by the
existing owners of the franchised business.  For purposes of this
paragraph, a "family member" means the spouse of an owner of the
franchised business, the child, grandchild, brother, sister, or
parent of an owner, or a spouse of one of those family members.
Nothing contained in this paragraph limits the rights of the
franchisor to disapprove a proposed transferee as provided in
subdivision (d).
   (5) Upon the franchisor's exercise of the right of first refusal,
the consideration paid by the franchisor to the franchisee and owners
of the franchised business shall equal or exceed all consideration
that each of them were to have received under the terms of, or in
connection with, the proposed sale, assignment, or transfer, and the
franchisor shall comply with all the terms and conditions of the
agreement or agreements to sell, transfer, or assign the franchised
business.
   (6) The franchisor shall reimburse the proposed transferee for any
expenses paid or incurred by the proposed transferee in evaluating,
investigating, and negotiating the proposed transfer to the extent
those expenses do not exceed the usual, customary, and reasonable
fees charged for similar work done in the area in which the
franchised business is located.  These expenses include, but are not
limited to, legal and accounting expenses, and expenses incurred for
title reports and environmental or other investigations of any real
property on which the franchisee's operations are conducted.  The
proposed transferee shall provide the franchisor a written
itemization of those expenses, and a copy of all nonprivileged
reports and studies for which expenses were incurred, if any, within
30 days of the proposed transferee's receipt of a written request
from the franchisor for that accounting.  The franchisor shall make
payment within 30 days of exercising the right of first refusal.
   (u) To unfairly discriminate in favor of any dealership owned or
controlled, in whole or part, by a manufacturer or distributor or an
entity that controls or is controlled by the manufacturer or
distributor.  Nothing in this subdivision shall be interpreted to
prohibit a franchisor from granting a franchise to prospective
franchisees or assisting those franchisees during the course of the
franchise relationship as part of a program or programs to make
franchises available to persons lacking capital, training, business
experience, or other qualifications ordinarily required of
prospective franchisees.
  SEC. 6.5.  Section 11713.3 of the Vehicle Code is amended to read:

   11713.3.  It is unlawful and a violation of this code for any
manufacturer, manufacturer branch, distributor, or distributor branch
licensed under this code to do any of the following:
   (a) To refuse or fail to deliver in reasonable quantities and
within a reasonable time after receipt of an order from a dealer
having a franchise for the retail sale of any new vehicle sold or
distributed by the manufacturer or distributor, any new vehicle or
parts or accessories to new vehicles as are covered by the franchise,
if the vehicle, parts, or accessories are publicly advertised as
being available for delivery or actually being delivered.  This
subdivision is not violated, however, if the failure is caused by
acts or causes beyond the control of the manufacturer, manufacturer
branch, distributor, or distributor branch.
   (b) To prevent or require, or attempt to prevent or require, by
contract or otherwise, any change in the capital structure of a
dealership or the means by or through which the dealer finances the
operation of the dealership, provided that the dealer at all times
meets any reasonable capital standards agreed to by the dealer and
the manufacturer or distributor, and also provided that no change in
capital structure shall cause a change in the principal management or
have the effect of a sale of the franchise without the consent of
the manufacturer or distributor.
   (c) To prevent or require, or attempt to prevent or require, a
dealer to change the executive management of a dealership, other than
the principal dealership operator or operators if the franchise was
granted the dealer in reliance upon the personal qualifications of
such person or persons.
   (d) (1) Except as provided in subdivision (t), to prevent or
require, or attempt to prevent or require, by contract or otherwise,
any dealer, or any officer, partner, or stockholder of any
dealership, the sale or transfer of any part of the interest of any
of them to any other person or persons.  No dealer, officer, partner,
or stockholder shall, however, have the right to sell, transfer, or
assign the franchise, or any right thereunder, without the consent of
the manufacturer or distributor except that the consent shall not be
unreasonably withheld.
   (2) (A) For the transferring franchisee to fail, prior to the
sale, transfer, or assignment of a franchisee or the sale,
assignment, or transfer of all or substantially all of the assets of
the franchised business or a controlling interest in the franchised
business to another person, to notify the manufacturer or distributor
of the franchisee's decision to sell, transfer, or assign the
franchise.  The notice shall be in writing and shall include all of
the following:
   (i) The proposed transferee's name and address.
   (ii) A copy of all of the agreements relating to the sale,
assignment, or transfer of the franchised business or its assets.
   (iii) The proposed transferee's application for approval to become
the successor franchisee.  The application shall include forms and
related information generally utilized by the manufacturer or
distributor in reviewing prospective franchisees, if those forms are
readily made available to existing franchisees.  As soon as
practicable after receipt of the proposed transferee's application,
the manufacturer or distributor shall notify the franchisee and the
proposed transferee of any information needed to make the application
complete.
   (B) For the manufacturer or distributor, to fail on or before 60
days after the receipt of all of the information required pursuant to
subparagraph (A), or as extended by a written agreement between the
manufacturer or distributor and the franchisee, to notify the
franchisee of the approval or the disapproval of the sale, transfer,
or assignment of the franchise.  The notice shall be in writing and
shall be personally served or sent by certified mail, return receipt
requested, or by guaranteed overnight delivery service that provides
verification of delivery and shall be directed to the franchisee.
Any proposed sale, assignment, or transfer shall be deemed approved,
unless disapproved by the franchisor in the manner provided by this
subdivision.  If the proposed sale, assignment, or transfer is
disapproved, the franchisor shall include in the notice of
disapproval a statement setting forth the reasons for the
disapproval.
   (3) In any action in which the manufacturer's or distributor's
withholding of consent under this subdivision or subdivision (e) is
an issue, whether the withholding of consent was unreasonable is a
question of fact requiring consideration of all the existing
circumstances.
   (e) To prevent, or attempt to prevent, a dealer from receiving
fair and reasonable compensation for the value of the franchised
business.  There shall be no transfer or assignment of the dealer's
franchise without the consent of the manufacturer or distributor,
which consent shall not be unreasonably withheld or conditioned upon
the release, assignment, novation, waiver, estoppel, or modification
of any claim or defense by the dealer.
   (f) To obtain money, goods, service, or any other benefit from any
other person with whom the dealer does business, on account of, or
in relation to, the transaction between the dealer and that other
person, other than for compensation for services rendered, unless the
benefit is promptly accounted for, and transmitted to, the dealer.
   (g) To require a dealer to prospectively assent to a release,
assignment, novation, waiver, or estoppel which would relieve any
person from liability to be imposed by this article or to require any
controversy between a dealer and a manufacturer, distributor, or
representative, to be referred to any person other than the board, if
the referral would be binding on the dealer.  This subdivision does
not, however, prohibit arbitration before an independent arbitrator.

   (h) To increase prices of motor vehicles which the dealer had
ordered for private retail consumers prior to the dealer's receipt of
the written official price increase notification.  A sales contract
signed by a private retail consumer is evidence of each such order.
In the event of manufacturer price reductions, the amount of the
reduction received by a dealer shall be passed on to the private
retail consumer by the dealer if the retail price was negotiated on
the basis of the previous higher price to the dealer.  Price
reductions apply to all vehicles in the dealer's inventory which were
subject to the price reduction.  Price differences applicable to new
model or series motor vehicles at the time of the introduction of
new models or series shall not be considered a price increase or
price decrease.  Price changes caused by either (1) the addition to a
motor vehicle of required or optional equipment pursuant to state or
federal law, or (2) revaluation of the United States dollar in the
case of foreign-make vehicles, are not subject to this subdivision.
   (i) To fail to pay to a dealer, within a reasonable time following
receipt of a valid claim by a dealer thereof, any payment agreed to
be made by the manufacturer or distributor to the dealer by reason of
the fact that a new vehicle of a prior year model is in the dealer's
inventory at the time of introduction of new model vehicles.
   (j) To deny the widow or heirs designated by a deceased owner of a
dealership, the opportunity to participate in the ownership of the
dealership or successor dealership under a valid franchise for a
reasonable time after the death of the owner.
   (k) To offer any refunds or other types of inducements to any
person for the purchase of new motor vehicles of a certain line-make
to be sold to the state or any political subdivision thereof without
making the same offer to all other dealers in the same line-make
within the relevant market area.
   (l) To modify, replace, enter into, relocate, terminate or refuse
to renew a franchise in violation of Article 4 (commencing with
Section 3060) of Chapter 6 of Division 2.
   (m) To employ a person as a representative who has not been
licensed pursuant to Article 3 (commencing with Section 11900) of
Chapter 4 of Division 5.
   (n) To deny any dealer the right of free association with any
other dealer for any lawful purpose.
   (o) (1) To compete with a dealer in the same line-make operating
under an agreement or franchise from a manufacturer or distributor in
the relevant market area.
   (2) A manufacturer, branch, or distributor or any entity that
controls or is controlled by, a manufacturer, branch, or distributor,
shall not, however, be deemed to be competing in the following
limited circumstances:
   (A) Owning or operating a dealership for a temporary period, not
to exceed one year.  However, after a showing of good cause by a
manufacturer, branch, or distributor that it needs additional time to
operate a dealership in preparation for sale to a successor
independent franchisee, the board may extend the time period.  The
board shall extend the time period until December 31, 2002, for any
manufacturer that meets all of the following requirements:
   (i) The manufacturer has no more than 25 franchisees in the state
and those franchisees collectively operate dealership facilities in
at least 15 counties of the state.
   (ii) All of the dealership facilities operated by the manufacturer'
s franchisees in the state trade exclusively in the manufacturer's
line-make.
   (iii) No fewer than one-half of the manufacturer's franchisees in
the state own and operate two or more dealership facilities in their
assigned areas of responsibility.
   (iv) The manufacturer holds a temporary ownership interest in no
more than two dealerships in the state that are located in the
relevant market area of any other franchisee of the same line-make
not owned, in whole or part, by the manufacturer.
   (B) Owning an interest in a dealer as part of a bona fide dealer
development program that satisfies all of the following requirements:

   (i) The sole purpose of the program is to make franchises
available to persons lacking capital, training, business experience,
or other qualities ordinarily required of prospective franchisees and
the dealer development candidate is an individual who is unable to
acquire the franchise without assistance of the program.
   (ii) The dealer development candidate has made a significant
investment subject to loss in the franchised business of the dealer.

   (iii) The program requires the dealer development candidate to
manage the day-to-day operations and business affairs of the dealer
and to acquire, within a reasonable time and on reasonable terms and
conditions, beneficial ownership and control of a majority interest
in the dealer and disassociation of any direct or indirect ownership
or control by the manufacturer, branch, or distributor.
   (C) Owning a wholly owned subsidiary corporation of a
distributorthat sells motor vehicles at retail, if, for at least
three years prior to January 1, 1973, the subsidiary corporation has
been a wholly owned subsidiary of the distributor and engaged in the
sale of vehicles at retail.
   (3) (A) Every manufacturer, branch, and distributor that owns or
operates a dealership in the manner described in subparagraph (A) of
paragraph (2) shall give written notice to the board, within 10 days,
each time it commences or terminates operation of a dealership and
each time it acquires or divests itself of an ownership interest.
   (B) Every manufacturer, branch, and distributor that owns an
interest in a dealer in the manner described in subparagraph (B) of
paragraph (2) shall give written notice to the board, annually, of
the name and location of each dealer in which it has an ownership
interest.
   (p) To unfairly discriminate among its franchisees with respect to
warranty reimbursement or authority granted its franchisees to make
warranty adjustments with retail customers.
   (q) To sell vehicles to persons not licensed under this chapter
for resale.
   (r) To fail to affix an identification number to any park trailer,
as described in Section 18009.3 of the Health and Safety Code, that
is manufactured on or after January 1, 1987, and which does not
clearly identify the unit as a park trailer to the department.  The
configuration of the identification number shall be approved by the
department.
   (s) To dishonor a warranty, rebate, or other incentive offered to
the public or a dealer in connection with the retail sale of a new
motor vehicle, based solely upon the fact that an autobroker arranged
or                                                  negotiated the
sale.  This subdivision shall not prohibit the disallowance of that
rebate or incentive if the purchaser or dealer is ineligible to
receive the rebate or incentive pursuant to any other term or
condition of a rebate or incentive program.
   (t) To exercise a right of first refusal or any other right
requiring a franchisee or any owner thereof to sell, transfer, or
assign to the franchisor, or to any nominee of the franchisor, all or
any material part of the franchised business or of the assets
thereof unless all of the following requirements are met:
   (1) The franchise authorizes the franchisor to exercise a right of
first refusal to acquire the franchised business or assets thereof
in the event of a proposed sale, transfer or assignment.
   (2) The franchisor gives written notice of its exercise of the
right of first refusal no later than 45 days after the franchisor
receives all of the information required pursuant to subparagraph (A)
of paragraph (2) of subdivision (d).
   (3) The sale, transfer, or assignment being proposed relates to
not less than all or substantially all of the assets of the
franchised business or to a controlling interest in the franchised
business.
   (4) The proposed transferee is neither a family member of an owner
of the franchised business, nor a managerial employee of the
franchisee owning 15 percent or more of the franchised business, nor
a corporation, partnership, or other legal entity owned by the
existing owners of the franchised business.  For purposes of this
paragraph, a "family member" means the spouse of an owner of the
franchised business, the child, grandchild, brother, sister, or
parent of an owner, or a spouse of one of those family members.
Nothing contained in this paragraph limits the rights of the
franchisor to disapprove a proposed transferee as provided in
subdivision (d).
   (5) Upon the franchisor's exercise of the right of first refusal,
the consideration paid by the franchisor to the franchisee and owners
of the franchised business shall equal or exceed all consideration
that each of them were to have received under the terms of, or in
connection with, the proposed sale, assignment, or transfer, and the
franchisor shall comply with all the terms and conditions of the
agreement or agreements to sell, transfer, or assign the franchised
business.
   (6) The franchisor shall reimburse the proposed transferee for any
expenses paid or incurred by the proposed transferee in evaluating,
investigating, and negotiating the proposed transfer to the extent
those expenses do not exceed the usual, customary, and reasonable
fees charged for similar work done in the area in which the
franchised business is located.  These expenses include, but are not
limited to, legal and accounting expenses, and expenses incurred for
title reports and environmental or other investigations of any real
property on which the franchisee's operations are conducted.  The
proposed transferee shall provide the franchisor a written
itemization of those expenses, and a copy of all nonprivileged
reports and studies for which expenses were incurred, if any, within
30 days of the proposed transferee's receipt of a written request
from the franchisor for that accounting.  The franchisor shall make
payment within 30 days of exercising the right of first refusal.
   (u) (1) To unfairly discriminate in favor of any dealership owned
or controlled, in whole or part, by a manufacturer or distributor or
an entity that controls or is controlled by the manufacturer or
distributor.  Unfair discrimination includes, but is not limited to,
the following:
   (A) The furnishing to any franchisee or dealer that is owned or
controlled, in whole or part, by a manufacturer, branch or
distributor of any of the following:
   (i) Any vehicle that is not made available to each franchisee
pursuant to a reasonable allocation formula that is applied
uniformly, and any part or accessory that is not made available to
all franchisees on an equal basis when there is no reasonable
allocation formula that is applied uniformly.
   (ii) Any vehicle, part, or accessory that is not made available to
each franchisee on comparable delivery terms, including time of
delivery after placement of order.  Differences in delivery terms due
to geographic distances or other factors beyond the control of the
manufacturer, branch, or distributor shall not constitute unfair
competition.
   (iii) Any information obtained from a franchisee by the
manufacturer, branch, or distributor concerning the business affairs
or operations of any franchisee in which the manufacturer, branch, or
distributor does not have an ownership interest.  The information
includes, but is not limited to, information contained in financial
statements and operating reports, the name, address, or other
personal information or buying, leasing, or service behavior of any
dealer customer, and any other information which if provided to a
franchisee or dealer owned or controlled by a manufacturer or
distributor would give that franchisee or dealer a competitive
advantage.  This clause does not apply if the information is provided
pursuant to a subpoena or court order, or to aggregated information
made available to all franchisees.
   (B) Referring a prospective purchaser or lessee to a dealer in
which a manufacturer, branch, or distributor has an ownership
interest unless the prospective purchaser or lessee resides in the
area of responsibility assigned to that dealer or the prospective
purchaser or lessee requests to be referred to that dealer.
   (2) Nothing in this subdivision shall be interpreted to prohibit a
franchisor from granting a franchise to prospective franchisees or
assisting those franchisees during the course of the franchise
relationship as part of a program or programs to make franchises
available to persons lacking capital, training, business experience,
or other qualifications ordinarily required of prospective
franchisees.
   (v) As used in this section, "area of responsibility" is a
geographic area specified in a franchise that is used by the
franchisor for the purpose of evaluating the franchisee's performance
of its sales and service obligations.
  SEC. 7.  Section 34500 of the Vehicle Code is amended to read:
   34500.  The department shall regulate the safe operation of the
following vehicles:
   (a) Motortrucks of three or more axles that are more than 10,000
pounds gross vehicle weight rating.
   (b) Truck tractors.
   (c) Buses, schoolbuses, school pupil activity buses, youth buses,
and general public paratransit vehicles.
   (d) Trailers and semitrailers designed or used for the
transportation of more than 10 persons, and the towing motor vehicle.

   (e) Trailers and semitrailers, pole or pipe dollies, auxiliary
dollies, and logging dollies used in combination with vehicles listed
in subdivision (a), (b), (c), or (d).  This subdivision does not
include camp trailers, trailer coaches, and utility trailers.
   (f) Any combination of a motortruck and any vehicle or vehicles
set forth in subdivision (e) that exceeds 40 feet in length when
coupled together.
   (g) Any truck, or any combination of a truck and any other
vehicle, transporting hazardous materials.
   (h) Manufactured homes which, when moved upon the highway, are
required to be moved under a permit as specified in Section 35780 or
35790.
   (i) A park trailer, as described in Section 18009.3 of the Health
and Safety Code, which, when moved upon a highway, is required to be
moved under a permit pursuant to Section 35780.
   (j) Any other motortruck not specified in subdivisions (a) to (h),
inclusive, or subdivision (k), that is regulated by the Public
Utilities Commission or the Interstate Commerce Commission, but only
for matters relating to hours of service and logbooks of drivers.
   (k) Any commercial motor vehicle with a gross vehicle weight
rating of 26,001 or more pounds or any commercial motor vehicle of
any gross vehicle weight rating towing any vehicle described in
subdivision (e) with a gross vehicle weight rating of more than
10,000 pounds, except combinations including camp trailers, trailer
coaches, or utility trailers.  For purposes of the subdivision, the
term "commercial motor vehicle" has the meaning defined in
subdivision (b) of Section 15210.
  SEC. 8.  Section 35780.3 of the Vehicle Code is amended to read:
   35780.3.  A permit issued under Section 35780 for the movement of
a park trailer, as described in Section 18009.3 of the Health and
Safety Code, shall not be issued except to transporters, or licensed
manufacturers and dealers.
  SEC. 9.  Section 5.5 of this bill incorporates amendments to
Section 11713.1 of the Vehicle Code proposed by both this bill and SB
2060.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2001, (2) each bill
amends Section 11713.1 of the Vehicle Code, and (3) this bill is
enacted after SB 2060, in which case Section 11713.1 of the Vehicle
Code, as amended by Section 5 of this bill, shall remain operative
only until July 1, 2001, at which time Section 5.5 of this bill shall
become operative.
  SEC. 10.  Section 6.5 of this bill incorporates amendments to
Section 11713.3 of the Vehicle Code proposed by both this bill and SB
1819.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2001, (2) each bill
amends Section 11713.3 of the Vehicle Code, and (3) this bill is
enacted after SB 1819, in which case Section 6 of this bill shall not
become operative.
